CALCULATOR PRINTER VERSION DACK NEXT Perdan Carparation manufactures safes-large

Question

CALCULATOR PRINTER VERSION DACK NEXT Perdan Carparation manufactures safes-large mabile safes, and large walk-in statianary bank ses As part af its annual budging process, Perdon is analyzing the profitability of its tmo products. Part of this analysis invelves estimacing the amaunt of averhead to be allacated to each preduet line. The infermatian shown belom relates to overhead Units planned for 200 Katerial maves per product line Purchase orders per product line 350 800 1,710 produc: linc (a) EIYour ansver is correct. The total estimated manufacturing overhead was $261,000. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufecturing overhead costs are ass gned to: (Round answers to 2 decimal places, e.g.12-25 (2) One wak-n3232. LINK TO TEXT Attempts: 2 of used (b1) The total cstimated manufocturing averheod of $261,000 was comprised of $163,0C0 tor matnas handling costs and $98,000 for purchasing octvity costs. Under activity-based casting (ABC): (Round answers to 2 decimal places, a.g. 12.25) What amount of matenals handling coste are zszigned to (a) One mabile safe 428.9 (b) One walk-in safe 1403.83per unit Attemptsi 2 of S used (b2) The total estimated manufacturing averhead of $261,000as comprised of $163,0C0 far materials handing costs and 98,000 for purchasing activty costs. Under activily-based eosting (ABC: (Round answers to 2 decimal places, .g. 12.25.) whet "mount of purchasing activity costs 83signed to: (a) One mabile safe b) One walk-n sate

Explanation / Answer

(c)

Purchasing Cost assigned is as calculated below:

Activity Cost Pool Total Purchase Order Activity Rate Mobile safe Walk in Safe Purchasing Activity Cost 98,000.0 800.0 122.5 55,125.0 42,875.0 Total overhead 450*122.5 350*122.5 Units planned for production 200.0 55.0 Per unit 275.6 779.5

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